LG is shutting down its mobile phone business by July 31. Any existing phone in the market would continue to sell until supplies last, while support and software updates will remain available for some time. However, the company is officially taking off its interest and production from the mobile phone industry.
The rumor in the tech industry that LG is shutting down its mobile phone business ame true with the comany's official announcement in the LG Newsroom on April 5. The company said it that "stepping away from phone manufacturing and sales enables" themto "focus on growth sectors including EVs, IoT, and B2B solutions."
LG Electronics Inc . is a multinational electronics company headquartered in South Korea. The company is one of the biggest contributors to the market production of Home Entertainment, Mobile Communications, Home Appliances, and Air Solutions & Vehicle Components.
The Verge reported how the Korean Company has struggled with huge losses with the mobile division's sales over the last few years. LG's high-end smartphones had to compete against the rise of Samsung's technology and the recent affordable alternatives from the Chinese smartphone industry.
The LG Smartphone Lineup
LG competed against its rivals by conceptualizing a series of eye-catching smartphone designs and unusual form factors such as the LG Wing, which has the main display that could be rotated to reveal a secondary screen; the LG G8X Dual screen, which is a unit that could be flipped opened to two different screens; and the popular but unreleased Rollable Phone that extends the phone from approximately 6.7-inch to a 7.4-inch display screen.
LG Smartphone Market
Unfortunately, none of LG's endeavors appealed to the market enough to reach mainstream hits. The company's smartphone line continued to fall behind in the system performance and especially on the camera technology. This led to the company's lack of sales, not to mention the damage it received from the pandemic's downtime.
LG expects its closure to be finalized by the end of July. There have been rumors that the mobile phone manufacturing facilities would be sold off, however, no further details were made about it in the announcement.
LG assured its current customers that the company will continue to provide service support and software updates. The phone inventory will also continue to be available for sale in the market. However, the response time and availability may vary per region. LG will work with its suppliers and business partners to oversee services despite the closure of the business sector.
The South Korean company expressed that its decision to close the smartphone business sector is also related to concentrating its efforts on the development of electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions. LG is moving out of the mobile industry but will continue to provide leverage for their electronics and mobility-related technologies for the market.